I have been trying to follow this Euro pack debate and economists make some sense as you can follow their line of thinking be it with a slant from banking to industrialists. While the politicians make little sense, unless you happen to be that naive to believe them. Recently PM Cameron is both lauded and denounced particularly by the word press and I have to say on the radio, much my preferred news medium. But although it's obviously complicated why is it so difficult to predict where the UK will be now Cameron has dealt his (our) veto card? and is this not the same problem (difficult to predict) we Scots have over nationalism, I want to see an economic argument for nationalism not an emotional / political one. Will I get one?
Seems to me that politics and economics are failing each other and the people it is meant to help prosper, hence theĀ 99% demonstrations. The system has failed and is failing, I do not believe the Euro zone will cohere to a unified whole all acting for the "zone", in the UK the pension costs are a tad below 6% of GDP, in Greece they are 12% and in Italy they are 14%, can you see the rest of the Euro zone paying for that? or can you see the people of Greece and Italy taking a hit on their promised pensions? This is just one example of many of the fiscal fractures over which plasters are being stuck down with rhetoric.
Why is it so difficult to predict what will happen? it's Global, interlinked, a woven web, relies on confidence, will not rely on altruism, money is a commodity, it must make more money for those who have it and control it. The market place will suit the market place, that's why we have institutions and companies that are too big to fail, a global political failure now well observed. The purpose of this post? frustration at politics and economics and failure of it to work for the people or be understood to the extent that measures can be taken to make it work.
Those cynical and or wise could postulate that "who said it should work for the people?" at some point if it does not, it will fail anyway, especially with the new democracy of social internet sites, just look at Moscow and the peoples reaction to the recent election.
What is chinas economic model? for it has lifted 627 million people out of poverty, unprecedented in human history, India another billion person economy has the largest difference between rich and poor, a system that democracy (with corruption) seems to develop. Russia I have never understood but appears to be like India, super rich, and queuing poor, again with corruption.
In this global inter-weaved market place, if Brazil, India and China don't buy our goods or services, we will be in decline, which I believe will happen anyway due to the UK's governments cuts and not trying to grow the economy. What can I say, another failure!